Impact of Weather Extremes on Household Budgets
A recent survey by LocalCircles has shed light on the growing concerns among Indian households regarding soaring vegetable prices amidst an intense heatwave gripping the nation. The survey, encompassing over 48,000 consumers across 343 districts, reveals substantial price hikes in essential vegetables such as onions, potatoes, and tomatoes, exacerbating financial pressures on families.
India currently faces an unprecedented heatwave, with temperatures soaring 4-9 degrees Celsius above normal levels, severely affecting vegetable supplies. Despite governmental measures such as export restrictions and reduced import tariffs, the heatwave has intensified the annual summer decline in vegetable availability. Compounding these challenges, the delayed monsoon season has led to an 18% deficit in rainfall, hampering the planting and growth of summer crops.
Shaktikanta Das, Governor of the Reserve Bank of India, highlighted these issues during a recent monetary policy presentation, emphasizing the adverse impact of high temperatures and depleted water levels on fruit and vegetable harvests. The supply of essential items like pulses and vegetables remains a critical focus area for monitoring, he noted.
Throughout 2023, India has grappled with food inflation, particularly concerning vegetables, which have seen inflation rates as high as 28%. Experts suggest that early July rainfall could potentially alleviate these pressures, provided it is sufficient. Notably, tomato prices have witnessed a sharp surge in southern states due to the prevailing weather conditions.
As the country navigates through this challenging period, the coming weeks will be pivotal in assessing the influence of anticipated rainfall on the agricultural landscape and the subsequent relief it may bring to vegetable pricing and supply stability.
